Defying bleak global recession prospects, Southeast Asian economies showed considerable Indonesia, Thailand, Vietnam, and the Philippines. A variety of factors have lead to the Asian market success, all of which have earned several of Asian countries recognition from the 2015 Agility Emerging Markets Logistics Index, which closely examines emerging markets, supply chain executives, and international logistics.
The Spark That Lit the Financial Fire
Springboards that catapulted Asian stock markets into the stratosphere include the steady size of the middle class, a thriving population, bolstered urbanization rates and more spending capabilities. What’s more is the region has experienced an improvement in education, health and the reduction of poverty. While these are the factors that contributed to the financial success of Asian markets in 2015, it’s expected that their effects will continue into future years.
What’s more surprising about the financial success of Asian countries is that these results seemed so unlikely. The pervasive ripples of the worldwide recession, low oil prices, and additional concerns painted a bleak picture. Proving capable of beating the stacked odds, Asian markets have witnessed improved infrastructure investment, well-developed domestic demand and growing trade across several countries.
Compared to the 2014 Index, the Philippines rose three spots to number four when compared to other countries with a gross domestic product that fell under USD $300 billion. Additionally, the Asian country was also noted for its increased supply chain executive capabilities. In regards to Vietnam, the country earned the number seven spot due to its textiles, apparel and cutting edge good production.
Indonesia was noted for its supply chain executives and logistics capabilities, which earned it the number four spot on the Index for logistics market rankings. In the same category, Vietnam took the fifth spot and Thailand earned the 11th position. Individuals who are keeping their eyes open for viable potential investment markets might wish to turn their attention, and their finance force to:
- Thailand, noted for its manufacturing abilities
- Indonesia, a growing country with a sizeable consumer market and growth-driving potential
- Vietnam, which has also received recognition for its manufacturing capabilities, and for its speed of growth rather than its general strength of growth
China’s Effect on the Market
Practically no article related to the Asian market would be complete without at least mentioning the seemingly unstoppable financial power of China. Not only has the country earned the number one spot on the 2015 Index, it has started to flex its financial muscle in international countries as well.
Real estate properties around the world have been scooped up by Chinese buyers, including properties in London and the United States. Such rich Asian economies not only benefit the countries mentioned above but the countries in which Asian finances are spent. Other nations are still dealing with the ramifications of a dismal economy in addition to other economic woes. By doing business with and welcoming business from Thailand, China, and other Asian countries, those nations stand to experience economic boosts of their own.
Shifting dynamics have changed the face of the market, and Asian countries stand a good chance of being a catalyst for positive change and growth. While it might be uncertain just how far this Asian upswing will take the worldwide economy, it’s sure to be an interesting ride.